Tagged: Trade

The damage done by subsidies - The Dismal Science

Paul Walker Aug 15, 2014

From the Economist magazine comes this piece on China'a subsidies to ship building. In 2006 China enacted a “Long and Medium-Term Plan” [read subsidies to shipyards] to enlarge its shipping industry by 2015.Yet economists’ views on subsidies have hardened over time. China’s policy provides subsidies both for the construction of ships themselves and for the building … Read More

The payoff from a Free Trade Agreement - The Dismal Science

Donal Curtin Aug 05, 2014

Last week the Business Council of Australia released a report, Building Australia's Comparative Advantage, which in turn built on another report, Compete to Prosper: Improving Australia’s global competitiveness, which they had commissioned from McKinsey Australia. I haven't read either of them fully yet, and I'm not too sure whether I buy into the "let's aggregate industries into globally competitive … Read More

Trade and the poor - The Dismal Science

Paul Walker Aug 04, 2014

A interesting new NBER working paper on Measuring the Unequal Gains from Trade by Pablo D. Fajgelbaum and Amit K. Khandelwal. The abstract reads:Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries … Read More

TPP — can’t get something for nothing - The Dismal Science

Bill Kaye-Blake Feb 12, 2014

I have avoided discussing the Trans-Pacific Partnership (TPP) trade negotiations, because it’s complex and secret and yet to be decided. But a statement from Tariana Turia, Associate Minister of Health, leads me to comment. Turia’s plain packaging for cigarettes bill just passed its first vote. The bill is intended to reduce the sale of cigarettes by making […] … Read More

Cause and effect: ancient trade and development - The Dismal Science

Paul Walker Sep 26, 2013

In a previous post on the history of globalisation I quoted from Elhanan Helpman's book Understanding Global Trade. With regard to long-distance trade Helpman noted just how ancient trade is, While long-distance trade plays an essential role in modern economies, it was also a salient feature of economic development after the Neolithic Revolution, as hunter-gatherers evolved into sedentary … Read More

Offshoring and its effects on innovation in emerging economies - The Dismal Science

Paul Walker Sep 24, 2013

Outsourcing is still a controversial practice in most countries around the world. This is just as true for emerging markets as it is for the industrialised economies. The effects of outscouring are increasingly understood for industrialised countries but what of emerging markets? A new column at VoxEU.org looks at the effects of outsourcing on firm-level innovation in emerging … Read More

The fair-trade movement does more harm than good - The Dismal Science

Paul Walker Jul 30, 2013

Or so argue Amrita Narlikar and Dan Kim in a recent article in Foreign Affairs. A short summary of the Narlikar and Kim article reads,Despite the claims of its champions, the fair-trade movement doesn't help alleviate poverty in developing countries. Even worse, it is just another direct farm subsidy of the kind most conscientious consumers despise. Read More